There are endless ways to travel these days—from vacation clubs and cruises to timeshares and vacation home ownership. So, when it comes to a vacation club vs. timeshare, what’s the difference? Here is a closer look so you can make the right decision for you and your family.
What is a timeshare?
Making its debut in 1969, a timeshare can be equated to vacation homeownership: a lifetime commitment to annual trips to the same resort—or family of resorts—generally in the form of a condominium or apartment. You should expect to share the property with other owners throughout the year, with exclusive access for a specific period of time each year, typically one week. To enjoy a timeshare, you will need to enter into a contractual agreement and purchase ownership alongside dozens of other parties.
Two different timeshare contracts:
- Deeded contract: You are a partial owner of the timeshare and, therefore, have the ability to sell your share of the deed when you decide to do so.
- Right-to-use contract (RTU): You are able to utilize the property for a certain number of years, however, you do not assume any ownership of the property, nor do you earn any interest on the timeshare as there is no deed included in this contract.
Four main types of timeshares:
- Fixed-week timeshare: known as the traditional timeshare. A fixed-week timeshare means you have a set week at a set destination each year to enjoy your timeshare.
- Floating-week timeshare: a floating-week timeshare offers a little more flexibility, giving owners the option to enjoy their timeshare during a certain season of the year. Quick tip: desirable seasons are more difficult to book with this type.
- Biennial timeshare: a biennial timeshare offers the option to enjoy your timeshare every other year—typically by every odd or even year.
- Points-based timeshare: known as the most common and flexible option. A points-based timeshare means the owner will purchase their timeshare in the form of points for their home resort. These points can be used either at the timeshare’s home location, or within the brand’s network of resorts.
Owning a timeshare is a great option for creatures of habit or families that want to vacation in the same destination/resort year over year.
What is a vacation club?
This can vary based on the company, however, vacation clubs generally offer a membership-based service with access to a variety of properties, destinations, and travel benefits throughout the year. There is typically no commitment to a vacation club, so you can cancel at any time. You should be able to find details on membership agreements on the company’s website or by contacting the company directly.
Unlike timeshares, vacation clubs offer more flexibility in where and when you can vacation, without having to commit to lifelong homeownership—and the hassle of eventually selling. This is a preferred option for the more adventurous travelers or families wanting to visit multiple properties and destinations throughout the year.
Inspirato’s luxury vacation club gives members exclusive access to a curated portfolio of luxury vacation homes, hotels and resorts, and experiences in more than 100 highly sought-after destinations, with world-class service.
How does a timeshare work?
Typically, a timeshare home is purchased upfront in one lump sum by you and many others. Once you’ve purchased part of the property under a specific contract (as mentioned above), you will have a limited amount of time annually to enjoy the property (as you share it with the other property owners)—hence the word, “timeshare.” The general length of time each party can enjoy in their timeshare is one week per year.
How does a vacation club work?
A vacation club is a membership where you can purchase an allotted number of points to use on travel and accommodations within that club. The specifics of membership benefits, amenities, etc., will vary based on the company you choose to purchase through.
At Inspirato, we offer so much more than just travel and luxury accommodations. When you get an Inspirato Club membership, you gain exclusive access to a highly curated portfolio of luxury homes and travel experiences around the world—from Hawaii to Bali—and become part of an exclusive vacation club of like-minded travelers, among many other vacation club benefits.
How much does a timeshare cost?
Calculating timeshare costs is tricky, as a lot of different factors can go into the price of a timeshare. According to the American Resort Development Association (ARDA), the average cost of a timeshare transaction in 2022 was $23,940. But this number doesn’t include resort and HOA fees—which, according to the ARDA, can average an additional $1,000 annually. And if you’re looking to upgrade or stay somewhere different, there is an additional cost.
How much does a vacation club cost?
Just like timeshares, vacation club costs can vary based on services, properties, amenities, and so on. At Inspirato, we have two vacation club membership options:
Inspirato Club
Monthly membership: $650/month (plus an enrollment fee)
Annual membership: $7,800/year (waived enrollment fee)
Inspirato Pass
Monthly membership: $2,550/month (plus an enrollment fee)
A quick recap: vacation club vs. timeshare
Timeshare: lifelong commitment to vacation home ownership.
Vacation club: monthly or yearly membership. No commitment, cancel anytime.
How does a timeshare work? Purchase part of a resort home, apartment, or condominium. Stay is limited to that specific destination for one week/year. Upgrades or changes can be made for an additional fee.
How does a vacation club work? Monthly or annual membership cost with the flexibility to travel when, where, and however often you’d like, to destinations and accommodations within that membership’s network.
Timeshare cost (on average): $23,940 paid up front (plus roughly $1,000 annually for HOA and other fees).
Inspirato vacation club cost: $650/month (plus $650 enrollment fee) or $7,800/year. For our upgraded Pass membership, it’s $2,550 (plus $2,550 enrollment fee)
Learn more about exclusive benefits and what it means to become an Inspirato Club member.
